A worker smooths concrete at a housing development in Toronto, Thursday, Jan. 16, 2020. THE CANADIAN PRESS/Cole Burston

A worker smooths concrete at a housing development in Toronto, Thursday, Jan. 16, 2020. THE CANADIAN PRESS/Cole Burston

Canada’s unemployment rate rose in January to highest level since August

The nation’s economy lost almost 213,000 jobs in January alone

Statistics Canada says the economy lost almost 213,000 jobs in January as employment fell to the lowest level since August last year, wiping out the gains made in the fall.

The unemployment rate rose 0.6 percentage points to 9.4 per cent, the highest rate since August.

Financial data firm Refinitiv says the average economist estimate was for a loss of 47,500 jobs in January and an unemployment rate of 8.9 per cent.

The losses were almost entirely concentrated in Ontario and Quebec, and mostly in the retail sector as lockdowns and restrictions closed many businesses.

Employment declines were heavy in the services sector and part-time work fuelling the largest monthly decline since April when some two million jobs were lost.

Statistics Canada says the losses in January now put the country 858,300 jobs, or 4.5 per cent, short of employment levels from last February just before the first wave of the COVID-19 pandemic.

The unemployment rate would have been 12 per cent in January had Statistics Canada included in its calculations Canadians who wanted to work but didn’t search for a job.

RELATED: Canada’s economy likely suffered its worst year on record, shrank by 5%: StatsCan

Losses in January marked a second straight month that the labour market contracted after 63,000 positions disappeared in December to break a streak of monthly gains that began in May 2020.

January’s employment figures show the “continuing challenge of balancing economic activity with the need to protect public health,” Statistics Canada notes in the report, and how restrictions hit specific sectors and groups of workers harder than others.

Leah Nord, senior director of workforce strategies at the Canadian Chamber of Commerce, says today’s “unfortunately bleak” jobs report points to a need to find a new way to manage the pandemic.

“We simply cannot afford to be in a holding pattern until vaccines arrive,” she says.

“We need new strategies to manage the pandemic. The economic costs may very well damage Canada’s economy and structurally alter our labour market in ways that may not easily be repaired.”

Jordan Press, The Canadian Press

READ MORE: Canadian economy lost 63,000 jobs in Dec., first decline since April

Jobs

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

SASCU is looking to celebrate its 75th anniversary with a legacy project, in the same way the Shuswap credit union marked its 60th by commissioning the apple sculpture at its downtown location. That artwork includes 14 apples honouring SASCU’s founding families. (Lachlan Labere-Salmon Arm Observer)
Shuswap credit union to mark 75th anniversary with legacy project

SASCU will be looking for input from arts community, city

Interior Health reported 33 new COVID-19 cases on March 5. (Black Press Files)
Interior Health reports 33 new COVID-19 cases on March 5

Over 300,000 vaccine doses have been administered provincewide.

Dave Wallace and David Askew with Askew’s Foods present a $500 cheque on March 2 to Chrissy Deye and Monica Kriese with the volunteer-run Food With Friends free lunch program. (Contributed)
Salmon Arm Food with Friends free lunch program receives support

Funds from Askew’s to help volunteers keep meals coming four days per week

Okanagan College, Vernon campus. (Brendan Shykora - Vernon Morning Star)
Student housing coming to Vernon, Salmon Arm

Province announces $66M for new student beds for Okanagan College campuses

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

C.E. “Ned” Bentley owned a garage on Shaughnessy Avenue, now Lakeshore Drive in Summerland. Bentley later went on to serve on Summerland’s council and was recognized with the Good Citizen Award in 1939. (Summerland Museum photo)
Former Summerland reeve once ran garage

C.E. “Ned” Bentley was a prominent figure in Summerland’s past.

Malawian police guard AstraZeneca COVID-19 vaccines after the shipment arrived in Lilongwe, Malawi, Friday March 5, 2021. Canada is expecting its first shipments of AstraZeneca vaccine next week. (Associated Press/Thoko Chikondi)
B.C.’s daily COVID-19 cases climb to 634 Friday, four more deaths

Currently 255 people in hospital, 66 in intensive care

A crashed helicopter is seen near Mt. Gardner on Bowen Island on Friday March 5, 2021. Two people were taken to hospital in serious but stable condition after the crash. (Irene Paulus/contributed)
2 people in serious condition after helicopter goes down on Bowen Island

Unclear how many passengers aboard and unclear where the helicopter was going

Surrey Pretrial in Newton. (Photo: Tom Zytaruk)
B.C. transgender inmate to get human rights hearing after being held in mostly male jail

B.C. Human Rights Tribunal member Amber Prince on March 3 dismissed the pretrial’s application to have Makayla Sandve’s complaint dismissed

Supporters rally outside court as Pastor James Coates of GraceLife Church is in court to appeal bail conditions, after he was arrested for holding day services in violation of COVID-19 rules, in Edmonton, Alta., on Thursday March 4, 2021. THE CANADIAN PRESS/Jason Franson
‘Law remains valid:’ Pastor accused of violating health orders to remain in jail

The Justice Centre for Constitutional Freedoms is representing the pastor

Two shepherds on Queest Mountain pose for a photo in front of the A-Frame tent they camp out in while tending their flock in the year 1930. 
(Sicamous and District Historical Society photo)
Shuswap History in photos: Shepherds’ Camp

A pair of 1930s shepherds pose for a photo in the camp they called home while tending a flock.

Paramjit Bogarh, connected to the murder of his wife in Vernon 35 years ago, has been relerased on full parole, one year after he was sentenced to five years in prison for accessory after the fact. (Contributed)
Full parole for ex-Okanagan man who helped wife’s alleged killer escape

Paramjit Bogarh pleaded guilty to accessory to murder after helping brother flee Canada

The Princeton Traditional Music Festival, normally held in August, was denied a grant due to COVID. (File photo)
COVID makes some of the 2021 grant decisions for Princeton council

Municipality doles out funds while striving to meet policy

Most Read